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 Choice of entity classification, U.S. “check-the-box” rulesSection 7701, and Treasury Regulation 301.7701-1, -2U.S. tax law governs the classification of a form of foreign business organization for U.S. tax purposes. The check-the-box regulations under Section 7701, generally effective January 1, 1997, provide that any “business entity” that is not required to be treated as a corporation is an “eligible entity” that may choose its classification. The regulations provide default classification rules. Eligible entities may elect out of the default rules. Entities that wish to change their previous classification must also do so by filing an election that qualifies for purposes of Section 7701.Form 8832 is known as the “check-the-box” election form, or the entity classification election form.

 Sourcing of income and (allocation of) expenses

 Tax treaties and conventionsTax treaties generally reduce withholding tax rates between Treaty partner jurisdictions and contain provisions that allow for procedures to avoid double taxation on one item of income by the same taxpayer by two different taxing jurisdictions and or States.

 Transfer pricing rules — intercompany or related party transactions, Section 482Requires an arm’s length price or rate on an intercompany or related party transaction under Section 482, Treasury Regulations under Section 482, and Organization for Economic Co-operation and Development (OECD) rules.OECD’s base erosion and profit shifting initiativeCountry by Country (CbC) reporting

 U.S. statutory withholding tax rules for FDAP income under chapter 3 (regular) and chapter 4 (FATCA for financial services industry) of the IRC